Is it possible to Rollover IRA to gold?

One of the most important things that you can do for yourself is to set up a retirement account. This account will build a little nest egg for when you decide to quit your job and enjoy the rest of your life. You may be relaxed and sitting pretty on a nice 401k and/or an IRA, but you’ve probably been hearing about the gold craze lately. Have you made a wrong decision to have a cash-based IRA?

The answer is no. You did not make a mistake in the original set-up of your IRA, and you made a great decision to get the type of retirement fund that costs you less in taxes. The pending question that’s on every IRA owner’s mind is if you can think about gold IRA Rollover. Luckily, you are able to!

This gold craze is not exactly new, but investors are now more than ever seeing it as a great investment opportunity. Gold is a precious commodity that is a natural resource and has only increased in value over the years. Think about it; it has survived and thrived through wars, the recession, the real estate bubble, and many other strains on the economy. It is currently being sold around $1,600, compared to just around $250 back in 2001! Who wouldn’t want to be a part of this action?

It’s a bit of a process, but it can be done, and it is relatively easy to do so. Since you already have an IRA account, you will need to open a second IRA account for the gold assets. All this takes is a bit of paperwork from your custodian (be sure that it is a trustworthy and reliable one, these people are handling your money after all!) and paying a few fees.

Speaking of custodians, you are going to have to find one that actually deals with and specializes in gold. Some custodians (like the one you originally went to for your first IRA) may not handle gold. Now, these custodians charge fees, as you know, so be sure to check out your custodian’s types of fees and also fee schedules. Some of them charge an annual fee, while others may charge just a fee per transaction.

It is often a good idea to make sure that the account is self-directed, which gives you the most control over your account. After you have created your second IRA, you must deposit money into this account. This money is how your custodian will be able to invest in gold for you. You tell your custodian what exactly you want to purchase, whether it is gold, silver, bricks, or coins.

One popular question is if you can put gold coins that you already own into your gold IRA account. Unfortunately, there are rules and regulations by the IRS that prohibit this.

So the answer to the impending question of switching to a gold IRA is yes. It is fairly easily done; it’s just a bit of a process. Now, one thing to keep in mind is not switching all of your investments to gold. In fact, having two IRA accounts is greatly beneficial to you. You will still gain interest from the cash in the initial account, while simultaneously making an investment that will earn you thousands of more dollars in the second account.

We all know how much you can’t wait to retire. No more having to work that 9 to 5 job, coming home and going to sleep, then doing it all over again the next day. Instead, you can spend the rest of your days doing some much needed traveling or playing a few rounds of golf. Before being able to do all of these relaxing activities, you’re going to need a retirement account. Good thing you created that IRA account and started saving for retirement!

Now, with the gold craze going on, chances are fairly high that you’re wondering about it and how to go about doing it. Gold is a great precious metals IRA to invest in; prices are getting higher by the year, meaning that you get more money when you decide to liquidate your assets. In addition, gold is less affected by inflation than traditional IRA assets (such as cash).

There are different types of gold that are acceptable to put into an IRA account, such as coins, bars, and yes, even bullions. For each of these types of gold, they have to be at least 99.5% pure (though having a purity of 99.99% is ideal), which means that they have to be weighed and graded by a certified professional prior to being allowed to be in the account.

For those of you who may not exactly know what bullion is, it is a refined and weighed piece of metal. In this case, the metal to which we are referring is gold. Gold bullion is often seen and thought of as gold bricks, which is often how they are sold. Rarely is gold sold in pieces or chunks. In fact, these gold bricks are how they are stored in financial institutions.

Why Rollover Your 401k to an IRA?

When gold bullion is in your IRA account, you don’t have the gold immediately available to you. Often, it is stored two places removed from you. Does this sound confusing? Well, when you open a gold-backed IRA account, you have to go through a custodian. This custodian is who you talk to in order to purchase gold on your behalf. Keep in mind that these custodians often charge you a fee, either per transaction or an annual fee. These custodian firms are not legally allowed to keep the gold in their possession, so the gold that they purchase with your money is stored in a financial institution for safekeeping until you decide to sell or liquidate your assets.

To answer the original question, yes, it is definitely possible to hold gold bullion in your IRA account. Keep in mind that you don’t have physical control over the account; you only have control over what goes in it. So be sure to pick a reliable custodian that you know will be responsible and trustworthy with your valuable investment.